Did Michael Kors dilute his brand?

Yes.

There are two reasons why I am writing this blog.
One, is because I like his branding. (His logotype is set in one of my favorite fonts - a customized Gotham.) His packaging is clean and simple.

And two, his stock lost almost half its value in the past year. (Down from a 52 week high of $95 and change to $46 and change as of today.)
I am not an investor and I am not a financial analyst.
I am simply a branding guy that loves design and makes simple daily observations, that may in fact be quite erroneous, but nonetheless, like to share them with who ever cares to read them.

My interaction with Mr Michael Kors' products came one day a few years back, strolling down trendy Robertson Boulevard, in Los Angeles.  It was the new store on the block and I ventured inside to check it out. Clean design and kudos to the extremely helpful sales staff.

But before I could say "how fresh!" there were seemingly another 4 stores popping up overnight. All within 8 miles of each other. (Beverly Hills / West Hollywood.) All of a sudden it wasn't that fresh anymore.
Don't all brands tread that fine line?  Especially aspirational and luxury brands.
More stores mean more sales. Right? They get a round of funding and the first thing they do it seems, is open up more stores.

But what are the long term implications?
How does overexposure affect your brand's value in the future?
When your demographic are fickle 18 - 40 year old women, overexposure can literally be a killer.
We are all human. We like exclusivity. We usually buy a certain luxury or aspirational brand because we want to be part of the lifestyle, the ethos and the heritage of that specific brand. We want to be part of that "exclusive" members only club.

Do you remember COACH? Yes that one. With those oversized CC logos adorning everything from key chains to duffle bags. Found in every suburban outlet mall or otherwise, in every major city in America. With declining sales for years, they are closing stores and reversing their fortunes. (It also helps having a new creative director at the helm.)
I can name many a company that have done just that. Burberry, Gucci, Yves Saint Laurent, Christian Dior to name a few. They were all once, victims of overexposure and thus brand dilution and by extension, quality control. But they are back stronger than ever, so Mr Kors, hang in there, all is not lost.

Louis Vuitton is a great example of a fashion, luxury brand that is carefully managed. (Even with all the counterfeits.) Tiffany is another. And then there is the king of retail - Apple. Apple has 350 stores in the US alone, that generate the most dollars per square foot than any other retail operation in the history of well, retail. Michael Kors had 337 at last count.  So, unless you are Apple maybe more is not necessarily better.

I do feel Mr Kors is in for a bumpy ride and it may seem that I am Monday night quarterbacking here, but I have to admit, I was very surprised to see how the company was not a little more careful in nurturing the brand a little better.
You will say expansion is expansion right?
Catch 22? Maybe. But what if they had opened 2 stores instead of the 4?

I have a feeling some executives on the board may be asking the same question.